Process of Fraud Sampling: ----Application Fraud: - An Application for a credit card or loan using details intended to mislead the issuer, or a card or loan obtained by using false information, fake identity over application form can be said to be an application fraud.
To check the credibility of a person, contact point verification, income document verifications & KYC document verifications are the basic methods used.
An applicant may use an altered data in his income documents so as to improve the chances of approval of his application. Consequently, after the approval, the member generally fails to make payments.
The documents that are presented by the applicant at the time of applying for the card or loan may be any of the following: -
Income Docs.
1. Income Tax Return (ITR) and Financial
2.
Form 16
3.
Salary Slip / Salary Certificate / Appointment letter
4.
Credit card Statement of any other Bank he is a card member of Other than these documents.
5.
LIC policy document
Bank Statement
KYC Docs
ID Proof (Passport, DL, Voter ID, PAN, Ration Card etc.)
It is an easily understood fact that alterations into the data of any of these documents or production of fake documents hence improving the profile of the applicant is not a very difficult task to be performed by intentional frauds.
A Fraud can make one or multiple applications to one or several card issuing banks using false data and variations between applications in order to make some of them pass the bank’s screening process.
Almost all Card or Loan issuing Companies / Banks, have contracts with vendors for sourcing their card applications. Since this is an outsourced activity, the types of frauds that we stated earlier / above are often committed by the employees of the vendors as well in order to improve their total number of applications sourced and consequently to meet their targets and get good commissions. Hence Issuers (Banks) often come across cases of application pumping, applications of non-existing persons or addresses.
We hence make attempts in several ways to help strengthen the banks improve the detection of fraudulent applications. Our first and foremost step towards this is to detect fraudulent / suspicious applications and minimize fraud application losses to the Card Issuer banks / Companies. We use our personal skills / experience and broad based approaches to achieve effectiveness in fraud Checks. We pick samples from several applications of same type of information / documents and through our discreet / Non discreet methods of verifications and investigations called fraud samplings try to detect the fraud applications / individuals / Sourcing agents
This Process is known as Fraud Sampling.
Sample Pick Up: - An executives of RCU or FCU on daily basis check 100% of the applications received for any products from the banks and select some percentage of the lot, depending over the type of document received for sampling. All the applications that are checked are stamped “F C U Checked” and the ones that are selected for sampling are stamped as “Fraud Sample Picked”. No application without a “fraud sample checked” stamp over it can be sent for further processing in the mailroom of the bank. Besides the executives who review the applications put a chit over the application mentioning the reason sample picked.
This chit helps the case to be verified and action plan to be prepared over it once it is sent to Agency. The premise(s) from where the applications are selected/checked is defined by the bank.
Infrastructure
Our organization is supported by the following infrastructure.
Separate premises approx. 1500 Square feet.
Ten Stationary telephone lines and fax line.
Mobile Phones to facilitate supervision work.
Pentium based computer systems with Internet connections under LAN.
Printer, Scanner and Photocopier to support the system
Independent Workstations for our executives.
Manpower
Our manpower consists of the following:
5 supervisors who manage these teams
One Manager
Thirty EDP & Backend Executives to support the operations
Five Tele callers
50 Field Executive to support the operations.
We are also in the process of fresh recruitment in fulfillment of our commitment to prompt and efficient service and expanding business.
